McDonald's Competitive Landscape Analysis

This assignment delves into the competitive landscape of McDonald's, a leading global fast-food chain. It requires students to analyze McDonald's strengths and weaknesses compared to its main competitors like Burger King, Subway, and KFC. The analysis should encompass brand positioning strategies, pricing models, target markets, and the impact of external factors like economic recessions on McDonald's performance. Students are encouraged to utilize provided resources and conduct further research to support their analysis.

Individual Report

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION ..............................................................................................................................7
REFERENCES................................................................................................................................8
.........................................................................................................................................................9

INTRODUCTION
Marketing is an essential concept of the each and every business to achieve competitive
benefits. It is identify as a management and study of exchange relationship. Main use of this tool
is to satisfy, keep and create customer value. It includes different parts such as communication
channel, promotional mix and other which help manager in order to attract large number of the
clients towards business products and services (Akram, Merunka and Shakaib Akram, 2011).
This report is based on McDonald's is a food retailer store in United Kingdom. They
deals is different variety of quality products and services which help them to increase their sales.
This study discussed about main competitors of company and business positioning in
marketplace. Competitor position such as human resource, marketing, pricing, supply chain,
brand value etc. all these are also shown in this project.
MAIN BODY
McDonald's is a fast food retailer business that was regulated in 1940 by Maurice
McDonald and Richard, in United States, California, San Bernardino. In the organisation, there
are about 36,900 employees are work with each other for the aim of business development and
success. Main motive and objectives of company is to provide quality product and service to the
customer at affordable price. In the marketplace, there are different competitors of the
McDonald's such as KFC, Burger King, Subway, Starbucks, Pizza Hut, Domino's, Dunkin'
Donuts, Wendy's, Taco Bell, Chipotle etc. All these are main challengers of the company that
effects business performance and provability in an effective and efficient manner (Joseph,
2012). But two are main including, Burger King and KFC. Those are describe as a detail form
are as below:
Burger King: It is big and famous food retailer in United Kingdom and other area. This
business was famous and popular for its quality product and services which is good to increase
sales and revenue in during the time period. It is a largest and well know restaurant that was
launched in 1953. It is a main challengers of the McDonald's because they produce different
variety in veg and non-veg foods such as soft drink, hamburgers, desserts, French Fries, Chicken,
Hot dogs and other products among the various customers and worldwide. Annual revenue of the
business is over 4 billion and worth of assets is 18.4 dollars. This company has over 15000
places in all over the world producing in approach 100 countries. In order to introduce their
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pricing strategy and product, they follow promotional mix including, sponsorship, sales
promotion, advertisement, slogan, tag line, effective packaging and other essential feature. So
with the help of these tools they highly attract large number of the customers towards the veg
and no-veg products.
KFC: It is another main and big competitor of the McDonald's which also produce same
products and services to the potentials and target customer. But is a second biggest food chain in
worldwide. Special product of this organisation are Burger and fried Chicken which is Delicacies
in taste of customer. It was founded in 1930 and located in approx 20,000 locations and branches
in more than one hundred twenty nation as at 2015. apart from that Fried Chicken, business
organisation provides French fries, salads, chicken fillet burgers, soft drink and other products
among other famous goods (McDonald and Wren, 2012). In order to promote and innovate their
products and services, company use different communication channel such as promotion,
advertisement, sales, marketing, public relation, sponsorship and other essential techniques in an
effective and efficient manner. So it is main challengers of the business entity that effects on
McDonald's sales and revenues. It is also effected on company performance and profitability in
an quick way.
(Source: Roy Morgan Single Source, 2013)
So both such as KFC and Burger King are main competitors of the McDonald's that
highly effects on its performance and sales (Nadolny and Ryan, 2015). Along with, company
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Illustration 1: Main Competitors of the McDonald's

should try to produce different quality products and essential services to their potentials and
target customers at reasonable cost. It is essential and beneficial for the organisation to attain
long term and desired goals and objectives in limited time period. It also help manager to gain
competitive benefits and advantages in an quick way. As per the chart that shown about the
different challengers of the business organisation. In the marketplace, there are large number of
the person are live and have different taste regarding food products. In this McDonald's rank is
very high as comparison to another fast food chain. In the KFC, there are approx 1.9 million
person are visit and eat business taste and delicacies food with happily.
Positioning of McDonald's: It is identify as an essential and important part of the
business growth and success. Entire development and progress of the company is mainly depend
on its market position. Along with, McDonald's has made itself to be the friendly and family
reasonable cost restaurant in the food industry (Nandini, 2014). In marketplace their position is
higher and good as comparison to another fast food chain industry with its quality and tasty
products. Main aim and objective of this organisation is to fulfil basic requirements and needs of
clients by providing quality and delicacies goods at affordable cost. They also offers different
facilities to their target and potentials customers such as home delivery, coupons, discounts and
other important services to them. In recent year, company decide to enlarge their business
operation and function in Bangalore. It is a essential and big way of the company development
and progress but in order to expand their business in such country, they face different issues like;
they are not aware regarding customer taste, preference, lifestyle, culture and other way. Another
problem is government rules and regulation which also effects entire performance and
profitability of organisation. But it is trustworthy and famous business entity which influence
various investors to invest in this company and gain competitive benefits. McDonald's
segmented into different categorises such as geographical, demographic, behavioural and
Psychographic (Ropot, 2013). All these are based on Region, Density, Age, Gender, Life-Cycle
stage, Income, occupation, personality, user status, degree of loyalty, benefits sought, social class
and lifestyle of the customers.
Competitive positioning of the McDonald's: It is one of the biggest and popular fast food
chain restaurant in all over the world. Main aim and motive of this company is to give quality
product and services to their customers in daily basis. With the help of this they can attain long
term and desired goals or objectives in limited time period. In the marketplace, there are different
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competitors of the McDonald's such as KFC, Burger King, Subway, Starbucks, Pizza Hut,
Domino's, Dunkin' Donuts, Wendy's, Taco Bell, Chipotle etc. All these are known as a
competitors and the main reason behind is that thy possess different kinds of plans and strategies.
Apart from that, there are certain sectors which are common in nature yet there functionality is
not same along with conduction of operation. All these are determine as below:
Supply chain: Positioning of supply chain is also very good in marketplace which help
manager to gain competitive advantages. In this, there are basically two elements which are
includes in process of goods such as raw material and value added component (Sameer, 2012).
All those are essential and important for the company to produce their ultimate products to end
user at reasonable cost. Main objective of this is to make a supplier chain that emphasises on
increasing customers value towards quality and ultimate fast food.
Pricing: Price of the product is very essential and main part of the company growth and
development. It is mainly depends of market demand and customer wants, so in this business
conduct survey and identify their clients culture class. All are done as per the information of
buyers and market demand along with company set affordable price of its products. They mainly
use Psychological and bundling pricing strategy in order to attract million customers and achieve
competitive benefits. Positioning of product price is also very good for the situation of
organisation (Shen and Xiao, 2014). In this cost for its extra-value meals like McChicken,
McVeggie were decreased to Rs. 80 and 90 severally from 100 and 115 respectively.
Brand value: It is essential and important for the progress and growth of organisation.
Brand value of the of business entity is very good in marketplace.
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(Source: McDonald's global brand value from, 2017)
The graph identify the global brand value of McDonald's from 2006 to 2017. Opening
value of business is 28.99 billion in 2006. company reached their brand value in 2017 is 97.72.
In upcoming year, McDonald's is growing repetitively which is good for them to gaining
competitive benefits in few time period (Smith and Burns, 2013). Brand of the business
organisation is well know and famous in all over the world and customer mind. It is essential
because of its quality products, services, tagline, marketing strategy, pricing strategy and other
element.
Human resource: It is a main asset of the company which plays vital and essential role in
recruiting & selecting knowledgeable person who can easily achieve long term goals of the
company. In year 2007, there are approx 57000 person were employed in McDonald's. They
mainly employ approximately 60 to 70 employees. Main role of HR in the organisation is to hire
talented and skilled persona who can easily deals with all customers as well as attain long term
goals and target of business entity in limited time period. In the company there are various
person are work with each in order to attain competitive benefits and advantages in limited time
period. In this manager of the company provide different training and development program to
their employees for increasing basic skills and knowledge of them on specific matter (Talpau and
Boscor, 2011). So in the human resource sector, business position also very good and strong.
Marketing: It is essential and beneficial concept of the each and every organisation to
introduce their innovative products and services in marketplace. In this manager of the
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Illustration 2: McDonald's global brand value from

McDonald's use various kind of communication channel such as promotional, advertisement,
sponsorship, public relation, packaging, banner, slogan and other useful feature. It includes
segmentation, targeting and positioning of the company (Talpau and Boscor, 2011). It is identify
as below:
Segmentation In the company, person willing to have a
delicious and hygienic conventional and non
conventional product at a restaurant.
Targetting McDonald's mainly targeted youth and
children from upper and middle class people.
Positioning In the business of fast food, McDonald's has
become successful In making itself to be
family, friendly low cost restaurant.
Position of McDonald's: In recent year, position of the company is grow in repetitively. It is
good for them for the business to improve their sales and revenues in an effective manner.
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(Source: Position of the McDonald's in few year, 2014)
This graph shown the business progress and growth in few year at different area. In this position
of company is increase day by day which is good for them in gaining competitive benefits and
advantages in an essential manner (Joseph, 2012). In recently business entity stated that worst
sales decline.
Recommendation: In order to improve business performance and profitability company
tries to change up their menu chart, enhancing customer services, revamping marketing, and
other essential feature. All these are important for the firm to achieve long term goals and
objectives. In order to attract large number of the customers towards business products and
services, organisation motivate their employees by providing effective training and development
secession to them. So they are highly motivated and easily deal with customers. Business should
by apply different communication channel like advertisement, promotion, and other essential
techniques. Business tries to expand their business operations and activities in another area so
they require large amount of fund and resources. It is done on the basis of marketing tools and
techniques (McDonald and Wren, 2012). Organisation use different pricing strategy which
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Illustration 3: McDonald's Profits Hit By Europe's Recession and US Competition

highly attract million number of customers, it is beneficial for the McDonald's to increase their
sales and revenue in a quick way. Business also follow their tagline, Banner, slogan, marketing
strategies and other element to influence customers towards business products and services. To
target different age group person and provide quality products at quick speed.
CONCLUSION
As per the above mentioned report, it can be concluded that marketing is very important
for the business development and progress. Concept of marketing includes different elements
which is good for the business position in competitive marketplace. In this, marketing, brand,
pricing, human resource and other positioning of the company is important for them in order to
gaining competitive benefits within an organisation. Supply chain is a main part of the company
to manufacture their products and deliver to end user. It is also better as comparison to another
business entity. In order to expand their business operations and function in nationally and
internationally, firm face different issue. In overcome all problems, tools of marketing support
manger to reduce all difficulties in an effective manner.
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REFERENCES
Books and Journals
Akram, A., Merunka, D. and Shakaib Akram, M., 2011. Perceived brand globalness in emerging
markets and the moderating role of consumer ethnocentrism. International Journal of
Emerging Markets. 6(4). pp.291-303.
Joseph, L., 2012. Similarities between competitors and the implications for location strategies. In
Geospatial Technologies and Advancing Geographic Decision Making: Issues and
Trends (pp. 132-150). IGI Global.
McDonald, S. and Wren, C., 2012. Informative brand advertising and pricing strategies in
internet markets with heterogeneous consumer search. International Journal of the
Economics of Business. 19(1). pp.103-117.
Nadolny, A. and Ryan, S., 2015. McUniversities revisited: a comparison of university and
McDonald's casual employee experiences in Australia. Studies in Higher Education.
40(1). pp.142-157.
Nandini, A. S., 2014. McDonald's success story in India. Journal of Contemporary Research in
Management. 9(3). p.21.
Ropot, J., 2013. McDonald’s Germany Facing External Difficulties with Ramifications on
Overall Decline in Guest Count.
Sameer, S. K., 2012. Strategy and Repositioning the Brand McDonald’s in India. International
Journal of Scientific and Research Publications. 2(9). pp.1-5.
Shen, Q. and Xiao, P., 2014. McDonald's and KFC in China: Competitors or Companions?.
Marketing Science. 33(2). pp.287-307.
Smith, P. W. and Burns, D. J., 2013. Positioning a brand extension in a retail environment: An
exploratory look. Journal of Business and Retail Management Research. 8(1).
Talpau, A. and Boscor, D., 2011. Customer-oriented marketing-A strategy that guarantees
success: Starbucks and McDonald's. Bulletin of the Transilvania University of Brasov.
Economic Sciences. Series V. 4(1). p.51.
Online
McDonald's global brand value from, 2017. [Online]. Available through:
<https://www.statista.com/statistics/326059/mcdonalds-brand-value/>.
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